Guyana’s rice sector is poised for another record harvest in 2025, but while farmers and millers are celebrating strong yields, the international market is proving less favourable, with falling prices and a global glut creating serious challenges for exporters.
President Dr. Irfaan Ali on Tuesday said that global rice production is at an “all-time high”, with major producers and exporters holding record stockpiles. This oversupply has triggered a decline in international prices, dampening the prospects for local farmers.
Currently, the global average price for white rice stands at US$416 per tonne — a figure far below what local stakeholders had hoped for.
Notwithstanding the price pressures, the government has injected billions of dollars into the industry to ensure farmers remain protected.
Recently, $2 billion in price support was provided, ensuring farmers received at least $4,000 per bag of paddy.
In addition, the state has:
• Supplied millions in fertiliser and seed paddy insurance;
• Removed VAT on machinery, equipment and agro-chemicals;
• Negotiated and settled Panama’s $1.5 billion debt to local millers; and
• Zero-rated the Guyana Rice Development Board’s (GRDB) sales commission in 2025.
Minister of Finance Dr Ashni Singh and Agriculture Minister Zulfikar Mustapha met with millers on Monday and Tuesday and are set to meet farmers later this week to jointly develop strategies to cushion the impact of low global prices.
“We have exhausted many of the traditional tools available, but the government is committed to working with millers and farmers to find creative solutions to minimise the burden,” the President said.
Despite the international price slump, production levels remain encouraging. The second crop covers 209,000 acres, with average yields at 40 bags per acre. This translates to an expected 8.3 million bags — one of the highest levels in the country’s history.
Such output, while positive, brings the added challenge of finding reliable markets and decent returns for farmers.
The government has also pushed risk management tools to support the sector:
• 69.4% of farmers are already registered for crop insurance.
• Ten new weather stations are expected to be operational by mid-October, giving farmers better forecasting capacity to plan cultivation cycles.
The President assured that there is “no need to scale back on local production”, but rather a need to rethink approaches to value addition, storage, and trade expansion.
According to him, Guyana must adapt by creating local uses for rice, adding value through processing, and pursuing new trade agreements.
“When you play in the big game, you have to respond to market forces. We need to invest in storage, stockpiling, and higher-value rice products that not only secure farmers’ incomes but also strengthen the sector’s resilience,” he said.
